There is some confusion around the term ‘nonprofit’. Many people hear this term and think that it means these organizations don’t generate any revenue, but this isn’t true. Nonprofit organizations still have to pay for various things such as rent, supplies, transportation, utilities, essential services, and of course employee salaries. People still receive compensation for their work at a non-profit. Unlike a for-profit business though, organizations use the extra money for societal good instead of benefitting the owners of a company.
Where does this money come from? Nonprofits often use various streams of revenue to support their mission. Money is generated through donations from individuals or philanthropists, grants from state or federal governments, grants from other organizations, memberships, selling branded products, selling tickets to events, etc. Some charities even run small thrift shops to generate income.
Grant writing is an important aspect to running a non-profit organization because grants are used to fund specific projects, which are essential to the mission. Applying for a grant can be a complicated process, but an expert grant writer can handle all of it. They have to be skilled in convincing others to fund the organization and have to be able to ‘sell’ the mission. Hiring a grant writer is key to the success of a nonprofit.
Robert Kurzban knows how important it is for nonprofits to be able to fund their missions. With a passion for helping others, he represents the Garces Foundation as Director of Development, leads RE:Writers, and is the founder of Optimal Auctions.
How Do Nonprofits Make Money?
